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Productivity of Industrial Capital and Labor, Kurdistan Region, Iraq (1995-2008)

Received: 20 October 2015     Accepted: 30 October 2015     Published: 17 November 2015
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Abstract

Productivity is growing in importance in Kurdistan as it evolves into a more formal, market-based economy. The measurement of productivity and factors of production - labor and capital – are important indicators of industrial firm performance, with an increase in productivity positively affecting economic growth. This research attempts to quantify the impacts of labor & capital on industrial productivity in the Kurdistan region, Iraq. Moreover, the correspondence between a number of hypotheses and empirical findings are examined. Specifically, this research creates a protocol to enable comparison among productivity indicators in production units in industrial firms. We examine the role of capital and labor forces on productivity in industries of Kurdistan over the 1995-2008 period. The study uses the added values of output, the number of workers, and capital value on productivity. Total Factor Productivity (TFP) is another indicator that is estimated in this research. The results indicate that the growth of industrial firms in Kurdistan is influenced more by labor than by capital productivity. The measurement of these effects is 0.65 and 1.42 for labor and capital, respectively. The production function exhibits increasing returns to scale. It can be concluded that labor is more significant to productivity than capital in this region. It reinforces the low level of technology in firms. Capital per worker (k=K/L) has a positive and significant effect on productivity in industrial firms of Kurdistan region.

Published in International Journal of Business and Economics Research (Volume 4, Issue 6)
DOI 10.11648/j.ijber.20150406.14
Page(s) 293-300
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Productivity, Labor and Capital Productivity, Total Factor Productivity (TFP), Industrial Firms in Kurdistan

References
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[2] Azarbaijani,K (1999), Total productivity in farming sector, Gilan, Agriculture development, vol137.
[3] Bitzer, J. and Stephan, A. (2002)” A Schumpeter –inspire Approach to construction of R & D Capital stock and Productivity" journal of econometrics, 46, 213-227.
[4] Baroo J, (2002) "economic growth in a cross section of countries", the quaterly journal 0f economics, may, p.p103-120.
[5] Branscomb L.M. (2001a), Japan: Model, Mentor, and Competitor, Chapter 9 in: L-M. Branscomb and Y-H. Kim, Eds. Korea at the Turning Point: Innovation-Based Strategies for Development, London: Praeger.
[6] Branscomb L.M. (2001b), Taiwan: Innovation in SMEs, Chapter 10 in: L-M. Branscomb and Y-H. Kim, Eds. Korea at the Turning Point: Innovation-Based Strategies for Development, London: Praeger. Bonelli, Regis (2002), "Growth of Productivity in Brazilian Industries", j. Devel Econ. 39. PP 85 – 109.
[7] Caballero markov (2002), "Productivity Growth in Polish Industry" j. Comparative . Econ. 11, PP. 1-20.
[8] Chung S-C. and L.M. Branscomb (2001), Technological Transfer and International Cooperation, Chapter 13 in: L-M. Branscomb and Y-H. Kim, Eds. Korea at the Turning Point: Innovation-Based Strategies for Development, London: Praeger.
[9] Diwert, W.E. (2003) on productivity measurement in the research paper "The theory of total factor productivity measurement in regulated industries" Academic press, new York.
[10] Hulten (1981), Landau & Jorgenson (1986) and Jorgenson (2001)., "Productivity and technical change: The case of Tiwan,Applied Economics", vol, 33 No 15, pp 1911-25.
[11] Kim K-D. (2001), Shifting strategies: From cost advantage to superior value, Chapter 5 in: L-M. Branscomb and Y-H. Kim, Eds. Korea at the Turning Point: Innovation.
[12] Lee Y-T. and L.M. Branscomb (2001), Korean Information Technology: Status and Policy Implications, Chapter 14 in: L-M. Branscomb and Y-H. Kim, Eds. Korea at the Turning Point: Innovation-Based Strategies for Development, London: Praeger.
[13] Maddison, A. 2001. The World Economy: A millennial perspective, Development Centre Studies. Paris: OECD.
[14] Mohammad M. (2003), industrial development in Kurdistan, Sulaimania university.
[15] O’Rourke, K.H. 2001. Globalization and Inequality: Historical Trends, NBER 8339, Cambridge MA: NBER.
[16] Park S-R. and H-S. Kim (2001), Promoting the culture of science and innovation, Chapter 6 in: L-M. Branscomb and Y-H. Kim, Eds. Korea at the Turning Point: Innovation-Based Strategies for Development, London: Praeger.
[17] Pindyck and Solimano, 2003 "Productivity measures", http://solstice.Crest.Org/Common/Comment–form.shtml.
[18] Salahadin Hafid (2004), Kurdistan economy, Sulaimania university. vol.1.
[19] Serven and Solimano, (2003), "Growth without productivity" j. Devel. econ, 19 (1/2), pp.25-38.
[20] Pilat, Dirk, shiho M. (2002)" Productivity Growth in Polish Industry. J. Comparative.Econ., 11, PP.1-20.
[21] Pindyck and Solimano, (2003), "trinity Primer.Ntional Productivity Coroporation-Malasia"
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  • APA Style

    Mousa Tawfeeq, Gerard D’Souza. (2015). Productivity of Industrial Capital and Labor, Kurdistan Region, Iraq (1995-2008). International Journal of Business and Economics Research, 4(6), 293-300. https://doi.org/10.11648/j.ijber.20150406.14

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    ACS Style

    Mousa Tawfeeq; Gerard D’Souza. Productivity of Industrial Capital and Labor, Kurdistan Region, Iraq (1995-2008). Int. J. Bus. Econ. Res. 2015, 4(6), 293-300. doi: 10.11648/j.ijber.20150406.14

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    AMA Style

    Mousa Tawfeeq, Gerard D’Souza. Productivity of Industrial Capital and Labor, Kurdistan Region, Iraq (1995-2008). Int J Bus Econ Res. 2015;4(6):293-300. doi: 10.11648/j.ijber.20150406.14

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  • @article{10.11648/j.ijber.20150406.14,
      author = {Mousa Tawfeeq and Gerard D’Souza},
      title = {Productivity of Industrial Capital and Labor, Kurdistan Region, Iraq (1995-2008)},
      journal = {International Journal of Business and Economics Research},
      volume = {4},
      number = {6},
      pages = {293-300},
      doi = {10.11648/j.ijber.20150406.14},
      url = {https://doi.org/10.11648/j.ijber.20150406.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20150406.14},
      abstract = {Productivity is growing in importance in Kurdistan as it evolves into a more formal, market-based economy. The measurement of productivity and factors of production - labor and capital – are important indicators of industrial firm performance, with an increase in productivity positively affecting economic growth. This research attempts to quantify the impacts of labor & capital on industrial productivity in the Kurdistan region, Iraq. Moreover, the correspondence between a number of hypotheses and empirical findings are examined. Specifically, this research creates a protocol to enable comparison among productivity indicators in production units in industrial firms. We examine the role of capital and labor forces on productivity in industries of Kurdistan over the 1995-2008 period. The study uses the added values of output, the number of workers, and capital value on productivity. Total Factor Productivity (TFP) is another indicator that is estimated in this research. The results indicate that the growth of industrial firms in Kurdistan is influenced more by labor than by capital productivity. The measurement of these effects is 0.65 and 1.42 for labor and capital, respectively. The production function exhibits increasing returns to scale. It can be concluded that labor is more significant to productivity than capital in this region. It reinforces the low level of technology in firms. Capital per worker (k=K/L) has a positive and significant effect on productivity in industrial firms of Kurdistan region.},
     year = {2015}
    }
    

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    AU  - Mousa Tawfeeq
    AU  - Gerard D’Souza
    Y1  - 2015/11/17
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    N1  - https://doi.org/10.11648/j.ijber.20150406.14
    DO  - 10.11648/j.ijber.20150406.14
    T2  - International Journal of Business and Economics Research
    JF  - International Journal of Business and Economics Research
    JO  - International Journal of Business and Economics Research
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    AB  - Productivity is growing in importance in Kurdistan as it evolves into a more formal, market-based economy. The measurement of productivity and factors of production - labor and capital – are important indicators of industrial firm performance, with an increase in productivity positively affecting economic growth. This research attempts to quantify the impacts of labor & capital on industrial productivity in the Kurdistan region, Iraq. Moreover, the correspondence between a number of hypotheses and empirical findings are examined. Specifically, this research creates a protocol to enable comparison among productivity indicators in production units in industrial firms. We examine the role of capital and labor forces on productivity in industries of Kurdistan over the 1995-2008 period. The study uses the added values of output, the number of workers, and capital value on productivity. Total Factor Productivity (TFP) is another indicator that is estimated in this research. The results indicate that the growth of industrial firms in Kurdistan is influenced more by labor than by capital productivity. The measurement of these effects is 0.65 and 1.42 for labor and capital, respectively. The production function exhibits increasing returns to scale. It can be concluded that labor is more significant to productivity than capital in this region. It reinforces the low level of technology in firms. Capital per worker (k=K/L) has a positive and significant effect on productivity in industrial firms of Kurdistan region.
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Author Information
  • Natural Resource Economics, West Virginia University, West Virginia, USA

  • Agricultural & Resource Economics Program, West Virginia University, West Virginia, USA

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